AMP has been slapped with a $5.175 million fine for failing to prevent breaches of best interests duty and for making a total of six contraventions of section 961L of the Corporations Act.
The embattled wealth giant copped the $5 million penalty after some of its financial planners engaged in “rewriting conduct.” This practice of “churning” clients into new insurance policies when there is nothing wrong with their existing policies, in order to generate higher commissions, exposes these clients to underwriting risks.
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